Arbitrum (ARB) Launches Atlas Feature, Transaction Fees Drop Dramatically!

Bittime – Thecryptois again abuzz with good news fromArbitrum (ARB), the leading Layer 2 solution on theEthereum. They have just launched the latest update called 'Atlas' which is predicted to cut transaction fees significantly.

This update is part of ArbOS 20 improvements initiated by Offchain Labs, a major contributor to Arbitrum. One of the main innovations in Atlas is the use of 'blob transactions'.

What are Blob Transactions?

'Blob transactions' is a new transaction type introduced in the previous Dencun update. This technology offers a new way for the blockchain to store information on Ethereum, different from the traditional "calldata" approach. With 'blob transactions', transaction costs for Layer 2 networks like Arbitrum can be drastically reduced.

Previously, other Layer 2 networks such as Optimism, Base, and Starknet have implemented 'blob transactions' after the launch of Dencun and reported significant decreases in average transaction costs. Now, it's Arbitrum's turn to follow suit after applying the necessary software updates.

Offchain Labs predicts the minimum base fee on the Arbitrum network will fall from 0.1 gwei to 0.01 gwei, or a roughly tenfold decrease. Meanwhile Arbitrum's average transaction fee, previously $0.5, could potentially drop to around $0.05 following the Atlas upgrade.

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Impact of the Dencun Upgrade on Ethereum and the Layer-2 Network

On March 13, the Ethereum community celebrated the successful launch of the Dencun upgrade aimed at increasing network cost efficiency.

However, after the upgrade, the price of Ether (ETH) actually experienced a sharp decline. According to CoinMarketCap data, the price of ETH fell from a peak of $4,082 to $3,932.

This downward trend continued on March 14, with ETH dropping 3% in the last 24 hours to $3,848. However, Layer-2 Ethereum networks such as Arbitrum actually benefit from reduced transaction fees thanks to the Dencun upgrade.

Overall, the upgrade on Ethereum aims to improve the efficiency of the Layer-1 blockchain. This could take the form of increasing transaction speeds, decreasing gas fees, or changing consensus mechanisms, ultimately increasing the long-term value of the network.

Crypto expert Richard Meissner, co-founder of Safe, stated via email that "Dencun will change the way Ethereum developers create smart contracts, resulting in more secure and user-friendly applications."

Independent investor VirtualBacon praised Dencun's upgrade as aiming to "reduce transaction costs by up to 75% on Layer-2 networks, and will reshape ecosystem capacity."

Ethereum's Layer-2 network, Starknet, confirmed that the target has been achieved. They stated, "Among Validity Rollups, Starknet has the largest share of L1 data availability costs, making it the largest beneficiary of this upgrade."

Starknet added, "As a result, we have seen a drastic reduction in gas costs, by more than 90%." They also shared a graph on X's social media showing a significant reduction in transaction fees on Layer-2 networks such as Starknet, OP mainnet, Base, zkSync, and Zora.

Market analyst Psquare Daily agrees with this, saying, "The Ethereum Layer-2 (L2) protocol has seen a significant reduction in transaction fees, with a reduction of up to 99%."

Data from Dune shows that median gas costs on Starknet have fallen from around $6 on March 1, before Dencun launched, to around $0.04 after launch.

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Upgrades and ETH Price: A Relationship That's Not Always Clear

Historically, upgrades on Ethereum have sometimes had no significant impact on the price of ETH. For example, in the week leading up to the Berlin upgrade in April 2021, the price of ETH only rose 7.5%.

Likewise with the London upgrade in August 2021 and Gray Glacier in June 2022. The price increase that occurred around the upgrade period could be caused by other market factors.

Interestingly, the price of ETH actually experienced a quite drastic decline after "the Merge", the hard fork which changed the Ethereum consensus mechanism from proof-of-work to proof-of-stake.

The current launch of Dencun coincides with the downward trend in ETH prices. If selling pressure continues to increase, for example due to hopes of an Ethereum ETF dwindling, the price of ETH could fall further.

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Cara Beli Arbitrum (ARB) di Bittime

You can buy and sell Arbitrum (ARB) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Arbitrum (ARB) is available on Bittime with the market pair ARB/IDR . To be able to buy ARB IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Arbitrum (ARB) on Bittime . 

Monitor price chart movements for Arbitrum (ARB) , Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read: 

Arbitrum Price Prediction (ARB) in 2024

Arbitrum (ARB) and Polygon (MATIC) Lead after Ethereum Dencun Upgrade

Arbitrum (ARB) Predictions According to Crypto Academy: Will ARB Continue to Rise?

DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.